UPDATE 1-DealerTrack Q2 profit halves

(Recasts; adds details)

Aug 11 (Reuters) - Software company DealerTrack Holdings Inc's (TRAK.O) second-quarter profit more than halved as expenses rose, and it cut its outlook for the year, sending its shares down 20 percent.

Net income was $3.1 million, or 7 cents a share, compared with $6.3 million, or 15 cents a share, last year.

Excluding items, the company earned 22 cents a share.

Revenue, however, rose 8 percent to $63.2 million.

Analysts were expecting earnings of 26 cents a share, on revenue of $64.6 million, according to Reuters Estimates.

For 2008, DealerTrack expects cash earnings of at least 80 cents a share and net earnings of at least 22 cents a share. It had previously projected cash earnings of at least $1.05 a share and net earnings of at least 48 cents a share.

Revenue expectations were cut to a range of $246 million to $253 million from a range of $268 million to $272 million.

Analysts were expecting the company to earn $1 a share, excluding items, on revenue of $260.3 million, according to Reuters Estimates

Shares of the Lake Success, New York-based company fell to $12.90 in trading after bell. They closed at $15.79 Monday on Nasdaq. (Reporting by Aftab Ahmed in Bangalore; Editing by Anil D'Silva)